Round Trip Transaction Costs

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Round Trip Transaction Costs

All commissions and other expenses related to trading a security. When an investor buys or sells a security, he/she must usually pay a fee to his/her investment adviser, who may or may not also be the broker, who is also entitled to a fee. Research and other indirect costs informing investment decisions are not usually considered transaction costs unless they directly relate to or result from a specific transaction. The investor accounts for these expenses when calculating whether an investment made a profit or loss. See also: All in Cost.
References in periodicals archive ?
With reference to the breakeven transaction costs used by Bessembinder and Chan (1995), the percentage round trip transaction cost is denoted as .
However, the excess returns of 0.8% from the application of these rules were not attractive after taking into account of 1% per round trip transaction costs.
The report found the overall prices of Cambodian residential property, including round trip transaction costs such as sales and transfer taxes, legal fees and other associated costs, was similar to Malaysia, Indonesia, the Philippines and Thailand.